Bank supervision only one condition for direct recap: Schaeuble
09/15/2012| 08:04am US/Eastern
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Pan-European banking supervision is a necessary prerequisite for the euro zone's permanent bailout fund to directly recapitalize banks but it is not the only one, German Finance Minister Wolfgang Schaeuble said on Saturday.
"We have the declaration of the heads of governments of the euro zone that European banking supervision is a necessary but not sufficient prerequisite," Schaeuble told reporters after a meeting of European Union finance ministers in Cyprus.
"The rules of the ESM remain."
Schaeuble added any country home to such banks would still need to apply for an adjustment program through the European Stability Mechanism (ESM).
He reiterated it was not helpful to set a deadline for banking supervision if it may not be reached. His French counterpart Pierre Moscovici said he was convinced a deal for a joint European banking supervisor could be reached by year-end.
(Reporting by Annika Breidthardt; editing by Daniel Flynn)
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